How would I solve this?
1 answer:
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Answer:
Step-by-step explanation:
step 1
<u><em>Simple interest</em></u>
we know that
The simple interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
substitute in the formula above
step 2
<u><em>Interest compounded annually</em></u>
we know that
The compound interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
substitute in the formula above
step 3
Find the differences between the two final amounts
Answer:
The final amount is 550.93.
Step-by-step explanation:
Here, the given amount is 468.
Now 8% of the given amount is
⇒ 8% of 468 = 37.44
So, the New amount = Initial Amount + 8% increase
= 468. + 37.44 = 505.44
Now 9 % of the new amount 505.44 is
[tex]\frac{9}{100} \times 505.44 = 45.4896/tex]
⇒ 9% of 505.44 = 45.4896
So, the Final amount = New Amount + 9% increase
= 505.44 + 45.4896 = 550.93
Hence, final amount is 550.93.